Today's Must Read
Applied Materials (AMAT) Rides on Foundry & Logic Spending
General Motors (GM) to Bank on EV Prowess Amid Chip Crunch
Wednesday, May 12, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including QUALCOMM (QCOM), Applied Materials (AMAT), and General Motors (GM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of QUALCOMM have outperformed the Zacks Wireless Equipment industry in the last one-year period (+64.5% vs. +56.9%). The Zacks analyst believes that the chip maker is benefiting from robust demand for smartphones globally and its ability to increase the scale of non-handset revenues.
With more than 700 5G designs, Qualcomm is well positioned to benefit from solid 5G traction with greater long-term visibility. Meanwhile, the company is focused on retaining its leadership in the market with innovative product launches. However, aggressive competition from low-cost chip manufacturers is a concern. Also, it is susceptible to risks arising from weaker handset shipments, especially in China.
Applied Materials shares have gained +62% over the last six months against the Zacks Semiconductor Equipment - Wafer Fabrication industry’s gain of +51.3%. The Zacks analyst believes that Applied Materials is driven by strong momentum across Semiconductor Systems and Applied Global Services.
Further, solid demand for silicon in several applications across various markets remains a tailwind. Also, increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. However, market uncertainties continue to persist. Also, rising competition poses risk to the company’s market position.
Shares of General Motors have gained +2.4% in the past three months against the Zacks Domestic Automotive industry’s loss of -19.2%. The Zacks analyst believes that General Motors' hot-selling brands like Chevrolet Silverado and Equinox along with upcoming electric vehicle (EV) launches are expected to boost the firm’s prospects.
The company’s Ultium Drive system and collaborations with Honda and EVgo are likely to scale up its e-mobility prowess. Notably, the firm aims to spend more than $27 billion through 2025 to launch gen-next EVs and self-driving vehicles. However, high product launch costs, R&D expenses and global chip shortage are anticipated to weigh on the firm’s 2021 operating income.
Other noteworthy reports we are featuring today include Sony Group (SONY), Keurig Dr Pepper (KDP) and Marathon Petroleum (MPC).
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Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>